financial question

I just got a 1099-INT statement from Chase (formerly Washington Mutual) showing the interest my online CD accounts earned in 2008.

Now, I opened these accounts in October of 2008 with a 12 month maturity. Which means, while my account is in-fact accruing interest, I won’t be able to touch that money until October of 2009. Which to me means that it isn’t income yet. This is further evidenced by the fact that if I were to close the accounts I would lose all accrued interest and pay fees.

So. My question is why the hell did they send me a 1099? I am not going to report this as income on my 2008 return.

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2 Responses to financial question

  1. hiscoach says:

    Ha, nice try. It’s reportable income in the tax year earned (ignoring the lose-it-if-you-withdraw-early provision), and 1099s are also reported to the IRS. If too many are missing (or too many $) from your return, you’re likely to need to fix your return later, possibly with penalties.

  2. britoman says:

    Damnit. Stupid tax laws.

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